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NYSE: PSX

www.phillips66.com

Lake Charles Refinery

Investor UpdateFebruary 2018

Cautionary Statement

1

This presentation contains certain forward-looking statements. Words and phrases such as “is anticipated,” “is estimated,” “is expected,” “is

planned,” “is scheduled,” “is targeted,” “believes,” “intends,” “objectives,” “projects,” “strategies” and similar expressions are used to identify such

forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking

statements relating to the operations of Phillips 66 and Phillips 66 Partners LP (including their respective joint venture operations) are based on

management’s expectations, estimates and projections about these entities, their interests and the energy industry in general on the date this

presentation was prepared. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions

that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking

statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements can be

found in filings that Phillips 66 and Phillips 66 Partners LP make with the Securities and Exchange Commission. Phillips 66 and Phillips 66

Partners LP are under no obligation (and expressly disclaim any such obligation) to update or alter these forward-looking statements, whether as

a result of new information, future events or otherwise.

This presentation includes non-GAAP financial measures. You can find the reconciliations to comparable GAAP financial measures at the end of

the presentation materials or in the “Investors” section of the websites of Phillips 66 and Phillips 66 Partners LP.

Diversified Downstream Company

2

RefiningMidstream ChemicalsMarketing &

Specialties

Integrated Midstream

Network

Pursue Organic and M&A

Opportunities

PSXP as a Funding Vehicle

50% Interest in CPChem

Location Advantaged

Chemicals Portfolio

USGC Petchem Project

Nearing Completion

Diversified Refining Portfolio

Investing in Quick Payout

Projects

Footprint Offers Opportunities

for Midstream Growth

Stable, High-return

Businesses

Enhancing U.S. Fuels

Brands

Executing Strategy

3

Leading Operating Excellence

Growth

CPChem USGC Petrochemicals Project

Phillips 66 Partners

Bakken Pipeline

Beaumont Terminal

Sweeny Hub

Returns

Refinery yield and feedstock flexibility projects

U.S. marketing reimaging

Distributions

30% dividend CAGR since September 2012

$10.4 B in total share repurchases/exchanges

High-Performing OrganizationVacuum Tower, Billings Refinery, Billings, MT

See appendix for footnotes.

93% 94% 91% 96% 95%

3% 4% 5% 2%5%

2013 2014 2015 2016 2017

Planned Maintenance & Turnarounds

Industry Average

Operating Excellence

4

Total Recordable Rates(Incidents per 200,000 Hours Worked)

’13 ’14 ’15

Refining Environmental Metrics(No. of events)

Refining Capacity Utilization(%)

Operating Costs and SG&A($B)

Phillips 66 CPChem DCP Midstream


5.4 5.8 5.5 5.5 5.8

2013 2014 2015 2016 2017

Adjusted Op. Costs and SG&A Turnaround Costs

317 302 279 264 240

2013 2014 2015 2016 2017

’16 ’17

Environmental, Social, Governance

5

Extensive ESG engagement

Board engaged in setting company ESG

strategy

Record low reportable environmental events

Investing in forward-looking research and

development technology

Promoting inclusive and diverse workforce

Committed to corporate and local

philanthropic programs


Industry Safety Metrics(Incidents per 200,000 Hours Worked)

0

2

4

6

Agricul.,CropProd.

FoodManufact.

AllManufact.

Construction Prof.& Bus.

Services

PetroleumRefining

Petchem.Manufact.

Phillips 66

15

20

25

30

2012 2013 2014 2015 2016

Phillips 66 SOx, NOx, PM Emissions(Thousand tons)

Source: I.H.S., April 2017

U.S. Crude Oil and Gas Plant NGL Production

6

0.0

0.6

1.2

2012 2013 2014 2015 2016 2017

Propane Butane

0.0

0.5

1.0

2012 2013 2014 2015 2016 20170.0

0.5

1.0

1.5

2.0

2.5

2012 2013 2014 2015 2016 2017

Midstream Macro Environment

U.S. LPG Export Volume (MMBD)

U.S. Crude Oil Export Volume (MMBD) U.S. Clean Product Exports (MMBD)

Source: EIA, annual averages data through October 2017, Petroleum Monthly 7

Phillips 66 Export Capacity (MMBD)

1.3

0.0

0.5

1.0

1.5

Clean Products Crude LPG Total

Th

ou

sa

nds

0

50

100

150

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Capacity

Demand

Chemicals Macro Environment

Global PE Capacity and Demand(MMTA)

Source: I.H.S., April 2017

U.S. Ethane Demand(MMBD)

8

0.0

0.5

1.0

1.5

2.0

2.5

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Exports

Base Ethane Petchem & Price-sensitiveFlexible Feedstock

Refining Macro Environment

Global clean product demand

expected to grow

Global utilization rates expected in

low-80s, with U.S. refining in low-90s

Strong U.S. utilization due to cost and

reliability advantages, and growing

export demand

Global Clean Product Demand (MMBD)

9Source: I.H.S., April 2017

0

10

20

30

40

50

60

70

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Diesel

Jet

Gasoline

Integrated Midstream Network

10

Midstream

11

Platform for growth

Focus on NGL value chain

Expand crude and products

export capability

PSXP 2018E year-end run-rate

adjusted EBITDA $1.1 B


2018E Annual Year-End Run-Rate Adjusted EBITDA($B)

PSXP

PSX

1.0 1.1

0.6

Assets Online Growth Market Total

1.8 – 2.0

PSXP

PSX


12

Funding Midstream growth

Organic growth opportunities

Sand Hills Pipeline expansions (TX)

Bayou Bridge Pipeline extension (LA)

Lake Charles Isomerization Unit (LA)

31% distribution CAGR 2013-2017

Top quartile growth post-2018

Distribution Growth(cents/unit)

21.3 22.527.4 30.2 31.7 34.0

37.040.0 42.8

45.8 48.1 50.5 53.1 55.8 58.661.5

64.667.8

3Q2013

4Q2013

1Q2014

2Q2014

3Q2014

4Q2014

1Q2015

2Q2015

3Q2015

4Q2015

1Q2016

2Q2016

3Q2016

4Q2016

1Q2017

2Q2017

3Q2017

4Q2017

DCP Midstream

13

Well positioned in low-cost supply basins

Strong growth projects around existing footprint

Sand Hills NGL Pipeline expansions to 365 MBD in

1Q 2018, 450 MBD in 2H 2018

DJ Basin gathering and processing infrastructure

expansions of ~200 MMCFD in 3Q 2018 with

another ~200 MMCFD in service mid 2019

Gulf Coast Express Permian 1.9 BCFD natural gas

JV pipeline expected in service 4Q 2019

Stable distributions to LP unit holders and

resumed distributions to owners

DJ Basin

0.9 Bcf/d

processing

capacity

Mid-continent

1.8 Bcf/d

processing

capacity

Permian

1.3 Bcf/d

processing

capacity

South

2.6 Bcf/d

processing

capacity

Feedstock Advantaged Chemicals Portfolio

14

Worldwide Net Ethylene

Capacity:

4,810 kMTA

U.S.

Net Ethylene

Capacity:

3,685 kMTA

U.S. Gulf

Coast

Saudi

ArabiaQatar

Middle East

Net Ethylene

Capacity:

1,125 kMTA

Chemicals Outlook

Source: I.H.S., December 2017. 15

Middle East ethane and North

America NGLs remain positioned at

the low end of the cost curve

Ethylene demand growth outpacing

global GDP

Expect demand growth to rapidly

balance new capacity additions

2018E Average Ethylene Production Cost Curve($/Ton)

M.E. Ethane

N.A. Ethane

N.A. LPG

W. Europe

LPG

M.E. LPG

Asia Naphtha

Asia LPG

W. Europe Naphtha

N.A. Naphtha

M.E. Naphtha

Asia Coal

0

500

1,000

0 50 100 150 200

Cumulative Production - Million Metric Tons

CPChem

16

USGC Petrochemicals Project

1,000 kMTA polyethylene at Old Ocean, TX

Started operations 3Q 2017

1,500 kMTA ethylene at Cedar Bayou, TX

Mechanical completion 4Q 2017

Commissioning 1Q 2018

Long-term mid-cycle EBITDA ~ $1.2-1.4 B

Additional projects in future years

Cash flow improvement expected in 2018

following heavy investment cycle CPChem USGC Ethane Cracker, Cedar Bayou, TX

EBITDA estimate is on a CPChem 100% basis and is based on July 2017 IHS forecast premises.

Enhancing Returns in Refining and Marketing

17

Refining

18

Improving returns

Billings heavy crude project (2Q 2017)

Ponca City yield flexibility (4Q 2017)

Wood River FCC modernization (2Q 2018)

Bayway FCC modernization (2Q 2018)

Lake Charles crude flexibility (2H 2018)

~ 25 other low-cost, high-return projects

Increasing clean product yield

Top tier refinery utilization rates


88% 90% 91% 90% 91%93% 94% 91% 96% 95%

U.S. Industry Average Phillips 66

2014 2015 20172013 2016

U.S. Refining Capacity Utilization

84.6%84.1% 84.4% 84.6%

85.5%

2013 2014 2015 2016 2017

PSX Global Clean Product Yield

Marketing and Specialties

19

Stable, high-return businesses

Marketing

Enhancing U.S. fuels brands

3% volume uplift at reimaged sites

Adding 25-30 European sites per year

Expanding brand licensing

Providing ratable refinery off-take

Specialties

Increasing value through integration,

optimization, and product innovation

Capital Structure

Investment-grade credit ratings

PSX – BBB+ / A3

PSXP – BBB / Baa3

Nearly $9 B of total liquidity

~3.5x Debt/EBITDA target at PSXP

20

22.4 22.0

23.9 23.7

27.4

6.1

8.6 8.910.1 10.1

21%

28%

27%

30%

27%

22%25%

26%

22%

Equity and Debt

2013 2015 2016 20172014

PSX Equity $B PSX Debt $B

PSX Noncontrolling Interest

Attributable to PSXP $BPSXP Third-party Debt $B

Consolidated Debt-to-Capital

PSX Debt-to-Capital, excluding PSXP

Capital Allocation

21

Maintain financial strength, strong

investment-grade credit rating

Fund sustaining capital expenditures

Pay a growing, secure and competitive

dividend

60% reinvestment and 40% shareholder

distributions

Distributions

Reinvestment

2015 – 2017


2015 consolidated capital expenditures of $5.8 billion include $1.5 billion investment in DCP Midstream.

Capital Expenditures

2018E Consolidated – $2.3 B

Phillips 66 2018E – $1.7 B

$0.8 B Growth

$0.9 B Sustaining

Phillips 66 Partners 2018E – $0.6 B

22

Consolidated Capital Expenditures($B)

1.8

3.8

5.8

2.8

1.8

2.3

2013 2014 2015 2016 2017 2018E

PSX PSXP

Distributions

Important source of shareholder value

Growing, secure, and competitive

dividend

30% CAGR with seven increases since

May 2012

Committed to share repurchases

Repurchased/exchanged 142 MM shares,

over 20% of shares initially outstanding

23See appendix for footnotes.

1.331.89

2.18 2.45 2.73

2013 2014 2015 2016 2017

Annual Dividend ($/share)

Cumulative Distributions ($B)

3.7

8.411.1

13.416.4

2013 2014 2015 2016 2017

Share Repurchases and Exchanges Dividends

Creating Value

~ $1.5 B long-term expected

EBITDA growth from projects

coming online 2017-2018

Shifted from heavy-investment

period to increasing net cash

generation

Continued investment in higher-

valued businesses generating

strong returns


Midstream Chemicals Refining M&S Total

Mid-Cycle Incremental Run-Rate Adjusted EBITDA($B)

~ $1.5

Delivering Shareholder Returns

Integrated portfolio

Disciplined capital allocation

Returns focused

Value-added growth

Strong balance sheet

Compelling investment


-20%

20%

60%

100%

140%

180%

220%

260%

300%

May-12 May-13 May-14 May-15 May-16 May-17

PSX +262%

S&P 100 +123%

Peers +178%

Total Shareholder Return

Investor UpdateFebruary 2018

NYSE: PSXP

www.phillips66partners.com

Phillips 66 Partners Ownership Structure

Phillips 66 Partners GP LLC

(PSXP General Partner)

General Partner Units

IDRs

Operating Subsidiaries

PSXP Public

Common

Unitholders

(NYSE: PSX)

(NYSE: PSXP)

100% ownership

interest

43% limited partner

interest

Joint Ventures

2% general

partner interest

55% limited partner

interest

As of December 31, 2017.

Public also owns 13.9 million perpetual convertible preferred units.27


Strong alignment with Phillips 66

Highly integrated assets

Stable and predictable cash flows

Strong growth potential

Financial flexibility

Pecan Grove Marine Dock

28

Sweeny Fractionator, Sweeny, TX


Pecan Grove Marine Dock

29

Distribution Growth

21.25 22.4827.43 30.17 31.68 34.00 37.00 40.00 42.80 45.80 48.10 50.50 53.10 55.80 58.60 61.50 64.60 67.80

3Q2013

4Q2013

1Q2014

2Q2014

3Q2014

4Q2014

1Q2015

2Q2015

3Q2015

4Q2015

1Q2016

2Q2016

3Q2016

4Q2016

1Q2017

2Q2017

3Q2017

4Q2017

3Q 2013 distribution represents the minimum quarterly distribution, actual distribution of 15.48 cents equal to MQD prorated.

Distribution / LP Unit(cents)

Coverage

Ratio1.13x 1.10x 1.10x 1.44x 1.32x 1.28x 1.14x 1.17x 1.39x 1.45x 1.14x 1.20x 1.24x 1.48x 1.31x 1.35x 1.12x 1.33x

30

Financial Growth

Adjusted EBITDA ($MM)

Percentages are 2014 – 2017 compounded annual growth rate; 2013 is partial year.

Adjusted EBITDA and Distributable Cash Flow shown are attributable to PSXP.31

33

141

285

471

754

2013 2014 2015 2016 2017

30128

228

380

572

2013 2014 2015 2016 2017

Distributable Cash Flow ($MM)

29116

194301

461

2013 2014 2015 2016 2017

Earnings ($MM)

Annual performance highlights since 2014

58% growth in Earnings

75% growth in Adjusted EBITDA

65% growth in Distributable Cash Flow

Phillips 66 Partners Capital Expenditures

2018E Capex of $595 MM

$510 MM Growth

Bayou Bridge Pipeline

Sand Hills Pipeline

Lake Charles Isomerization Unit

Sacagewea Gas Pipeline

$85 MM Sustaining

PSXP Capital Expenditures($MM)

4 66

205

461

352

595

2013 2014 2015 2016 2017 2018E


$510 MM 2018 Organic Growth Plan

Bayou Bridge Pipeline

Transports crude from Nederland, TX to Lake Charles, LA, and eventually to St. James, LA

Increases crude supply options for Louisiana refineries

Nederland to Lake Charles leg began operations in April 2016

Development continues for segment from Lake Charles to St. James, completion in 2H 2018

Sand Hills Pipeline

Adding lateral connections and increasing pumping capacity

Lake Charles Isomerization Unit

Developing new 25 MBD unit to increase premium gasoline production

Sacagawea Gas Pipeline

Constructing 24-mile raw natural gas pipeline in Bakken in joint venture with Paradigm Energy Partners

33

PSXP Debt Profile

300

500 500 500450

625

2020 2025 2026 2028 2045 2046

$2.9 B Total Debt as of December 31, 2017

$2.9 B Senior Notes, weighted average

cost of 3.97%:

5-Year $300 MM notes, 2.646% coupon






$0.1 MSLP Tax-exempt Bonds

BBB / Baa3 credit rating

Senior Notes Maturity Profile($MM)

Weighted average cost excludes revolving credit facility.

34

Financial Flexibility

Investment-grade credit rating

Financial targets:

30% distribution CAGR 2013-2018

3.5x debt / EBITDA

1.1x annual coverage ratio

Support Phillips 66 Midstream growth

35

-50%

0%

50%

100%

150%

200%

250%

300%

Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Sep-17Dec-17

Closed $340 MM

acquisition

Total Return Since IPO

Closed $700 MM

acquisition

PSXP +164%

Alerian MLP Index -15%

IPO

Closed $1.0 B

acquisition

Closed $70 MM

acquisition

Chart reflects total unitholder return July 22, 2013 to January 31, 2018. Distributions assumed to be reinvested in units. Source: Bloomberg.

See appendix for further footnotes.

Closed $236 MM

acquisition

Closed $775 MM

acquisition

Closed $1.3 B

acquisition

36

Closed $2.4 B

acquisition

Appendix

Freeport LPG Export Terminal

Corporate Strategy

Operating

Excellence

Growth

Returns

Distributions

High-Performing

Organization

Committed to safety, reliability and environmental stewardship while

protecting shareholder value

Reshaping our portfolio by capturing growth opportunities in Midstream

and Chemicals

Enhancing returns by maximizing earnings from existing assets and

investing capital efficiently

Committed to dividend growth, share repurchases and financial strength

Building capability, pursuing excellence and doing the right thing

38

Value Chain

39

MidcontinentIntegrated Growth

Midstream

Palermo rail terminal/Sacagawea Pipeline (PSXP)

Bakken Pipeline (PSXP)

Refining, Marketing & Specialties

Ponca City

Yield improvement projects

Tar Stripper Retirement

Gas oil hydrotreater expansion

100% lease crude purchases

Wood River

ULSD expansion

FCC modernization

Billings

Vacuum tower project

Marketing & Specialties

Grow branded fuels volumes

Enhance Phillips 66 brand

Marketing JVs and alliances40

Western GulfCreating a World-Class Energy Complex

Midstream

Sweeny Fractionator (PSXP)

Freeport LPG Export Terminal


Sweeny

Strategic asset integration

FCC optimization


Grow unbranded fuels volumes

Focus on high-quality branded assets

Increase high-margin exports

41

Eastern GulfRefining Logistics and Midstream Growth

Midstream

Beaumont Terminal expansion

Bayou Bridge Pipeline (PSXP)

River Parish NGL System (PSXP)


Lake Charles

Increase feedstock advantage

New Isomerization unit (PSXP)

ULSD project

Alliance

ULSD project


Grow unbranded fuels volumes

Leverage brand value through licensing


Grow performance lubricants and export sales

42

West CoastEnhancing Returns


San Francisco

Yield improvements

Reduce Coker Operating Pressure

Renewable diesel project

Los Angeles

Renewable diesel project


Grow branded and unbranded fuels volumes

Enhance 76 brand


Grow export lubricant sales

43

Atlantic BasinEnhancing Returns


Bayway

FCC modernization

Yield improvements


Grow JET and COOP brands in Europe

Increase unbranded volumes in the U.K. and U.S.

Expand brand licensing in the U.S.

44

Adjusted Free Cash Flow2012–2017 Average

0.91.7

1.0 (0.3)

Adjusted CFO & PSXPContributions

Sustaining Capex Available Cash Flow

1.00.8

(0.2)

Adjusted CFO Sustaining Capex Adjusted FCF

Midstream ($B) Chemicals ($B)

Adjusted CFO excludes working capital. Sustaining capex excludes capital leases.

Midstream adjusted CFO excludes PSXP. PSXP contributions are calculated as consideration paid by PSXP to PSX in dropdown transactions plus quarterly cash distributions paid from PSXP to PSX.

Midstream sustaining capex excludes PSXP.

Phillips 66’s share of DCP Midstream, CPChem and WRB adjusted CFO reflects that portion of those entities’ cash flow over which Phillips 66 has significant influence over reinvestment/distribution

decisions. DCP Midstream, CPChem and WRB free cash flow calculated based on Phillips 66’s share of after tax cash flow at the enterprise level.

2.71.8

(0.8)


Refining ($B) Marketing & Specialties ($B)

PSXP

Contributions

0.9 0.8

(0.1)


45

27%

20%

13%

7%

M&S

Chemicals

Refining

Midstream

-15%

0%

15%

30%

Average Capital Employed ($B)

Corporate

2012–2017 Average Adjusted ROCE

46

PSX Total

12%

0

(8%)

2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32

2.9

7.9

5.0

Cash Undrawn RevolvingCredit Facility

TotalCommittedLiquidity

0.3 0.3

2.0

4.0

5.0

0.5

2019 2020 2021 2022-30 2031-50

Bonds Revolving Credit Facility Term Loans

Phillips 66 Debt and Liquidity

47

Debt Maturity Profile($B)

Liquidity($B)

Debt maturity profile and liquidity as of December 31, 2017. Excludes PSXP.

Debt maturity profile excludes capital leases.

2018 Sensitivities

Sensitivities shown above are independent and are only valid within a limited price range.

48

Phillips 66 Outlook

49

1Q 2018

Global Olefins & Polyolefins utilization Mid-90%

Refining crude utilization Mid-80%

Refining turnaround expenses (pre-tax) $230 MM - $260 MM

Corporate & other costs (after-tax) $160 MM - $180 MM

2018

Refining turnaround expenses (pre-tax) $520 MM - $570 MM

Corporate & Other costs (after-tax) $640 MM - $680 MM

Depreciation and amortization $1.4 B

Effective income tax rate Low-to-Mid-20%

2018 Capital Budget

50

Footnotes

51

Slide 3

Total share repurchases and exchanges include the PSPI share exchange in 2014. Dividend CAGR

calculated from initial dividend of $0.20 per share in 3Q 2012 to last increase of $0.70 per share in 2Q

2017.

Slide 4

Industry averages are from: Phillips 66 – American Fuel & Petrochemical Manufacturers (AFPM) refining

data, Chevron Phillips Chemical Company LLC (CPChem) – American Chemistry Council (ACC), DCP

Midstream, LLC (DCP Midstream) – Gas Processors Association (GPA).

Slide 5

Industry safety metrics as of 2016. Source: Bureau of Labor Statistics.

Sulfur oxides (SOx), nitrous oxides (NOx) and particulate matter (PM).

Footnotes

52

Slide 11

Run-rate adjusted EBITDA for PSXP assets online represents the estimated run-rate view as of December

31, 2017. Run-rate adjusted EBITDA for PSX assets online represents the sum of (i) forecasted year-end

2018 EBITDA of other Midstream assets currently online and (ii) an estimate of the run-rate EBITDA

potential of terminal, storage and other logistics assets currently embedded in the Refining segment if they

were transferred to the Midstream segment and market-based fees were charged to Refining for their use.

Slide 18

To enhance comparability to current operating assets, clean product yield shown excludes impacts from

Whitegate and Melaka prior to their sales. U.S. Industry average from U.S. Energy Information

Administration (EIA).

Slide 21

Reinvestment excludes Phillips 66’s portion of self-funded capital spending by DCP, CPChem and WRB.

Includes $1.5 B equity contribution to DCP in 2015.

Footnotes

53

Slide 23

Annual dividend reflects sum of declared quarterly dividends. 2017 reflects one quarterly dividend of

$0.63 and three quarterly dividends of $0.70. Dividend CAGR calculated from initial dividend of $0.20 per

share in 3Q 2012 to last increase of $0.70 per share in 2Q 2017. 2014 share repurchases/exchanges

include the PSPI share exchange.

Slide 24

Chart reflects estimated mid-cycle run-rate adjusted EBITDA contribution of projects coming online in

2017 and 2018.

Slide 26

Chart reflects total shareholder return May 1, 2012 to January 31, 2018. Dividends assumed to be

reinvested in stock. Source: Bloomberg.

Peer average includes Delek US Holdings, Inc., HollyFrontier Corporation, Marathon Petroleum

Corporation, PBF Energy Inc., Andeavor (formerly Tesoro Corporation), Valero Energy Corporation,

Enterprise Products Partners L.P., ONEOK, Inc., Targa Resources Corp., Celanese Corporation, Eastman

Chemical Company, Huntsman Corporation, LyondellBasell Industries, and Westlake Chemical

Corporation.

Footnotes

54

Slide 32

Capital expenditures attributable to the Partnership. Excludes predecessor capital spending

Slide 36

$2.4 B transaction closed as of October 6, 2017, includes $625 MM non-recourse Bakken JV debt and

$100 MM of Merey Sweeny, LP (MSLP) debt.

Footnotes

55

1H 2017

1H 2017 is as of June 30, 2017, or the six-month period ended June 30, 2017, as applicable; except as

otherwise noted.

3Q YTD 2017

3Q YTD 2017 is as of September 30, 2017, or the nine-month period ended September 30, 2017, as

applicable; except as otherwise noted.

Forecasted and Estimated EBITDA

We are unable to present reconciliations of various forecasted and estimated EBITDA included in this

presentation, because certain elements of net income, including interest, depreciation and income taxes,

are not reasonably available. Together, these items generally result in EBITDA being significantly greater

than net income.

Non-GAAP Reconciliation (slide 4)

56

2013 2014 2015 2016 2017

Production and operating expenses 4,206$ 4,435$ 4,294$ 4,275$ 4,699$

Selling, general and administrative expenses 1,478 1,663 1,670 1,638 1,695

5,684 6,098 5,964 5,913 6,394

Plus:

Sentinel operating expenses* 81 90 88 94 -

Total expenses 5,765 6,188 6,052 6,006 6,394

Less:

Turnaround expenses** 368 424 516 506 598

Adjusted Operating Costs and SG&A 5,397$ 5,764$ 5,536$ 5,500$ 5,796$

*Sentinel Transportation, LLC became a wholly-owned subsidiary of Phillips 66 on 12/31/16. Costs for 2013 - 2016 are included for comparison purposes.

** Turnaround expenses are reported under Operating expenses in the Income Statement

Millions of Dollars

Non-GAAP Reconciliations (Slide 45)

57

FCF Reconcilition

Cash From Operations GAAP 886 355 2,604 908

Less: Change in Non-Cash Working Cap. (3) - 119 (52)

Cash From Operations (excluding WC) 883 355 2,723 855

Less: P66 Equity affiliate cash from ops 177 355 518 -

Add: Equity look through cash from ops 357 998 466 -

Less: PSXP's portion of CFO* 182 - - -

Adjusted FCF (excl WC) 881 998 2,671 855

Total Capex GAAP 1,693 - 944 198

Less: Growth Capex 1,277 - 229 135

Sustaining Capex 416 - 715 63

Less: P66 Equity affiliate sustaining capex 250 - - -

Add: Equity look through sustaining capex 112 207 107 -

Less: PSXP's portion of sustaining capex 16 - - -

Adjusted Sustaining Capex 262 207 822 63

PSXP Contributions* 1,042 - - -

Adjusted Free Cash Flow 1,661 791 1,849 792

*PSXP formed in 2013, values of 0 included for 2012

Millions of Dollars

Average 2012 - 2017

Midstream Chemicals Refining

Marketing &

Specialties

PSXP Adjusted EBITDA and Distributable Cash Flow

Reconciliation to Net Income (Slide 31)

58

Millions of Dollars

2013 2014 2015 2016 2017

Reconciliation to Net Income Attributable to the Partnership

Net income attributable to the Partnership 29 116 194 301 461

Plus:

Net income attributable to Predecessors 145 129 112 107 63

Net income 174 245 306 408 524

Plus:

Depreciation 43 46 61 96 116

Net interest expense — 5 34 52 99

Income tax expense 2 1 — 2 4

EBITDA 219 297 401 558 743

Proportional share of equity affiliates’ net interest, taxes and depreciation — — 31 45 66

Expenses indemnified or prefunded by Phillips 66 — 2 2 6 8

Transaction costs associated with acquisitions 1 3 2 4 4

EBITDA attributable to Predecessors (187) (161) (151) (142) (67)

Adjusted EBITDA 33 141 285 471 754

Plus:

Deferred revenue impacts*† — 2 4 11 6

Less:

Equity affiliate distributions less than proportional EBITDA — — 19 28 29

Maintenance capital expenditures† 3 12 8 22 50


Preferred unit distributions — — — — 9

Distributable cash flow 30 128 228 380 572

Adjusted EBITDA for all prior periods has been retrospectively adjusted to present our proportional share of equity affiliates’ EBITDA, rather than cash distributions

received.

*Difference between cash receipts and revenue recognition.† Excludes MSLP capital reimbursements and turnaround impacts.

PSXP Adjusted EBITDA and Distributable Cash Flow

Reconciliation to Operating Cash Flow (Slide 31)

59

Millions of Dollars

2013 2014 2015 2016 2017

Reconciliation to Net Cash Provided by Operating Activities

Net cash provided by operating activities 199 296 392 492 724

Plus:


Income tax expense 2 1 — 2 4

Changes in working capital 18 (3) (12) 28 (30)

Adjustment to equity earnings for cash distributions received — — — (1) 1

Other — (2) (13) (15) (55)

EBITDA 219 297 401 558 743

Proportional share of equity affiliates’ net interest, taxes and depreciation — — 31 45 66

Expenses indemnified or prefunded by Phillips 66 — 2 2 6 8

Transaction costs associated with acquisitions 1 3 2 4 4

EBITDA attributable to Predecessors (187) (161) (151) (142) (67)

Adjusted EBITDA 33 141 285 471 754

Plus:

Deferred revenue impacts*† — 2 4 11 6

Less:

Equity affiliate distributions less than proportional EBITDA — — 19 28 29

Maintenance capital expenditures† 3 12 8 22 50


Preferred unit distributions — — — — 9

Distributable cash flow 30 128 228 380 572

Adjusted EBITDA for all prior periods has been retrospectively adjusted to present our proportional share of equity affiliates’ EBITDA, rather than cash distributions

received.

*Difference between cash receipts and revenue recognition.† Excludes MSLP capital reimbursements and turnaround impacts.

Non-GAAP Reconciliations (Slide 46)

60

Phillips 66** Midstream Chemicals Refining M&S Corporate

Phillips 66 ROCE

Numerator

Net Income 3,974$ 317 836 1,824 873 (12)

After-tax interest expense 203 - - - - 203

GAAP ROCE earnings 4,177 317 836 1,824 873 191

Special Items (463) 91 74 5 (57) (438)

Adjusted ROCE earnings 3,714$ 408 910 1,828 815 (247)

Denominator

GAAP average capital employed* 30,705 6,055 4,540 13,797 3,073 3,074

Discontinued Operations (77) - - - - -

Adjusted average capital employed* 30,628$ 6,055 4,540 13,797 3,073 3,074

*Total equity plus debt.

GAAP ROCE (percent) 14% 5% 18% 13% 28% 6%

Adjusted ROCE (percent) 12% 7% 20% 13% 27% -8%

** Phillips 66 consolidated includes discontinued operations.

Millions of Dollars

Average 2012-2017

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